Trump victory could shift SEC crypto policy and lawsuits

The United States Securities and Exchange Commission’s (SEC) rigorous approach toward cryptocurrency regulation may ease after Donald Trump’s recent election win.

Gary Gensler’s tenure as SEC chair has been marked by aggressive enforcement, interpreting many digital assets as unregistered securities under long-standing laws.

However, with Republicans securing a decisive victory, changes could be on the horizon, according to Bloomberg.

At the Bitcoin Nashville conference in July, President Trump stated he would fire Gensler “on day one” of his presidency, signaling potential shifts in regulatory leadership.

New policies under a Trump administration may pave the way for revised regulations allowing crypto firms to register and comply with rules that have previously sparked legal battles.

“We expect both the Trump administration's and the new Congress's approach to crypto regulation to be much more constructive,” commented Jack Inglis, CEO of the Alternative Investment Management Association.

The replacement of Gensler could lead to more accommodating crypto regulations, reduced enforcement actions, and bipartisan legislative opportunities.

“That can’t be the solution because whether you like crypto or you don’t like crypto, it’s not going away. The enforcement cases that have been brought are what they are, but they keep bringing them, and we keep seeing crypto products,” noted William McLucas, former SEC enforcement director, who emphasised that relying on the Howey Test was insufficient.

Coinbase’s chief legal officer Paul Grewal expressed optimism for a shift, stating to Fox Business that he anticipates “significant changes” in the SEC’s crypto caseload under new leadership.

“I think the new administration will take a fresh look at all the existing crypto cases brought under Gary Gensler and distinguish between the ones aimed at what are clearly scams and fraud and ones that are not," he said.

“Last night, the people voted for this country to take a new direction, and Chairman Gensler should respect that vote by stepping down from his position immediately,” emphasised Chris Iacovella, CEO of the American Securities Association, to Bloomberg.

Crypto markets responded positively, reaching a five-month high, with Bitcoin (CRYPTO:BTC) at the forefront.